November 07, 2017
HanesBrands Returns to Organic Sales Growth
HanesBrands (asi/59528) produced year-over-year organic sales growth for the first time in eight quarters during the third quarter of 2017, the Winston-Salem, NC-based apparel maker has reported.
For the three months ending September 30, HanesBrands’ revenue tallied $1.8 billion, up 2% over the same period from the prior year. The leading supplier of apparel basics said international sales drove growth, offsetting sluggish domestic performance that resulted, in part, from weaker-than-expected back-to-school sales. International sales, bolstered by Hanes Europe Innerwear, Champion Europe and Hanes Australasia, accounted for 31% of sales in the third quarter. Global Champion sales increased 16% in the quarter, Hanes said.
“The value of diversifying our portfolio with international and activewear acquisitions is evident, and we are making progress on several initiatives to adapt to the evolving and challenging retail environment in the United States,” said Hanes Chief Executive Officer Gerald W. Evans Jr.
According to Hanes, GAAP earnings per share in the third quarter came in at $0.55 – a 22% increase. Meanwhile, adjusted EPS rose 7% to $0.60, the company said. Third quarter operating profit increased 11% to $253 million, while year-to-date net cash from operations soared 59% to $331 million.
Going forward, Hanes estimates full-year net sales of $6.45 billion to $6.475 billion. Evans is optimistic about the future. “In the fourth quarter, we expect to once again achieve organic sales growth,” he said. “We are continuing to drive strong double-digit online sales growth across businesses and geographies. We are making progress on our goal to use our brands, innovations, acquisitions and online investment to create shareholder value and drive sustainable growth.”
While excited about organic sales growth, Hanes has also been active in making key acquisitions. Last month, Hanes announced it acquired supplier Alternative Apparel (asi/34850) in an all-cash transaction valued at approximately $60 million on an enterprise basis.